UK car sales grow in July - but 'urgent reform' required, says SMMT

August 11, 2026

The UK's new car market has reached a notable growth milestone, with 156,571 units registered last month, making it the strongest July since 2019. However, the Society of Motor Manufacturers and Traders (SMMT) warns that the current market model is unsustainable for the UK industry.

The growth was driven primarily by electrified vehicle uptake, with battery electric vehicles (BEVs) up 44.5% (year-on-year) claiming a 27.5% market share in July. Plug-in hybrids were up 33.6% taking a 14.9% share. BEV registrations was led by the Renault 5 E-Tech (1,805 registrations) followed by the Kia EV3 (1,691) and Jaecoo E5 (1,291).

The SMMT says the BEV growth was partly led by a number of vehicles now being eligible for the UK's Electric Car Grant (ECG), meaning significant savings can be had for company car drivers. However, it estimates that BEVs will take a 27.4% market share by the end of 2026 - falling short of the 33% UK mandate target.

"That progress cannot be sustained if manufacturers continue haemorrhaging billions in EV discounts, distorting demand to avoid even steeper penalties." Said Mike Hawes, SMMT Chief Executive.

"We need urgent reform of the regulation, else Britain risks undermining its competitiveness and the jobs and livelihoods that depend on this industry."

SMMT figures show that demand for new vehicles grew across all sectors. Fleets represent the largest stronghold with a 59.9% share in the market and 9.5% increase over June 2026. Year to date, fleet registrations grew by 7.5% year-on-year with 755,576 vehicles in 2026 compared to 703,036 in 2025.

In order, the three top-selling cars in July was the Ford Puma (3,531), Nissan Qashqai (3,224), and Kia Sportage (3,025). Year to date, the Puma and Sportage currently take first and second place (33,173 and 29,033, respectively) with the Jaecoo 7 following closely behind (26,549).